SEHK:8246

Stock Analysis Report

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Executive Summary

Zhonghua Gas Holdings Limited, an investment holding company, provides integrated energy services primarily in the People's Republic of China.


Snowflake Analysis

Flawless balance sheet with questionable track record.

Share Price & News

How has Zhonghua Gas Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8246 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.7%

8246

1.1%

HK Construction

1.2%

HK Market


1 Year Return

-11.9%

8246

-15.4%

HK Construction

5.4%

HK Market

Return vs Industry: 8246 exceeded the Hong Kong Construction industry which returned -15.5% over the past year.

Return vs Market: 8246 underperformed the Hong Kong Market which returned 5.5% over the past year.


Shareholder returns

8246IndustryMarket
7 Day-3.7%1.1%1.2%
30 Day-7.1%-2.9%-4.4%
90 Day-10.3%-1.0%7.6%
1 Year-11.9%-11.9%-11.0%-15.4%9.7%5.4%
3 Year-10.4%-11.9%-35.1%-43.3%3.5%-7.6%
5 Year-61.4%-62.0%-38.7%-49.2%12.0%-6.8%

Price Volatility Vs. Market

How volatile is Zhonghua Gas Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Zhonghua Gas Holdings undervalued compared to its fair value and its price relative to the market?

23.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 8246's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 8246's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 8246 is poor value based on its PE Ratio (23.2x) compared to the HK Construction industry average (8x).

PE vs Market: 8246 is poor value based on its PE Ratio (23.2x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8246's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8246 is overvalued based on its PB Ratio (2x) compared to the HK Construction industry average (0.8x).


Next Steps

Future Growth

How is Zhonghua Gas Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.3%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Zhonghua Gas Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Zhonghua Gas Holdings performed over the past 5 years?

28.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8246 has high quality earnings.

Growing Profit Margin: 8246's current net profit margins (11.3%) are lower than last year (26.1%).


Past Earnings Growth Analysis

Earnings Trend: 8246 has become profitable over the past 5 years, growing earnings by 28.5% per year.

Accelerating Growth: 8246's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 8246 had negative earnings growth (-62.2%) over the past year, making it difficult to compare to the Construction industry average (-7.7%).


Return on Equity

High ROE: 8246's Return on Equity (8.9%) is considered low.


Next Steps

Financial Health

How is Zhonghua Gas Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8246's short term assets (CN¥536.4M) exceed its short term liabilities (CN¥130.5M).

Long Term Liabilities: 8246's short term assets (CN¥536.4M) exceed its long term liabilities (CN¥1.7M).


Debt to Equity History and Analysis

Debt Level: 8246 is debt free.

Reducing Debt: 8246 has no debt compared to 5 years ago when its debt to equity ratio was 19.5%.

Debt Coverage: 8246 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 8246 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Zhonghua Gas Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 8246's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 8246's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 8246's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8246's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 8246 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 8246's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.8yrs

Average board tenure


CEO

Hubert Chan (62 yo)

no data

Tenure

CN¥1,861,000

Compensation

Mr. Wing Yuen Chan, also known as Hubert, has been the Chief Executive Officer of Zhonghua Gas Holdings Limited (formerly known as Northern New Energy Holdings Limited) since August 2014 and serves as its ...


CEO Compensation Analysis

Compensation vs Market: Hubert's total compensation ($USD267.09K) is about average for companies of similar size in the Hong Kong market ($USD231.54K).

Compensation vs Earnings: Hubert's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Yishi Hu
Executive Chairman5yrsCN¥2.67m15.11%
CN¥ 142.3m
Wing Yuen Chan
CEO, Compliance Officer & Executive Directorno dataCN¥1.86mno data
Wai Man Kwong
CFO & Executive Director6yrsCN¥1.86mno data
Min Lin
Executive Director6yrsCN¥2.67m13.5%
CN¥ 127.2m
Kwok Lau
Independent Non-Executive Director3.17yrsCN¥248.00kno data
Xuwen Qin
Independent Non-Executive Director0.67yrCN¥14.00kno data
Lee Ma
Independent Non-Executive Director5.83yrsCN¥248.00k0.062%
CN¥ 582.4k

5.8yrs

Average Tenure

55yo

Average Age

Experienced Board: 8246's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 8246 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.6%.


Top Shareholders

Company Information

Zhonghua Gas Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zhonghua Gas Holdings Limited
  • Ticker: 8246
  • Exchange: SEHK
  • Founded:
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$941.755m
  • Shares outstanding: 3.62b
  • Website: https://www.8246hk.com

Number of Employees


Location

  • Zhonghua Gas Holdings Limited
  • Chinachem Century Tower
  • 23rd Floor
  • Wan Chai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8246SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2011

Biography

Zhonghua Gas Holdings Limited, an investment holding company, provides integrated energy services primarily in the People's Republic of China. The company’s New Energy Business segment provides integrated ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/08 12:52
End of Day Share Price2020/08/07 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.